AI legal startup Norm has raised $120 million in a Series C funding round led by Khosla Ventures, giving the almost three-year-old company a valuation of $1.2 billion and pushing it into unicorn territory. The deal underscores continued investor appetite for legal technology that promises to automate routine legal work, an area now crowded with rivals such as Harvey and Legora.

Norm operates an AI-native law firm, Norm Law, which relies on the company's own AI agents overseen by human attorneys and is developing agents that can supervise other agents. Rather than billing by the hour as most firms do, Norm charges clients based on outcomes. The round drew a wide range of backers including Bain, Craft Ventures, Coatue, Vanguard, New York Life, TIAA, Fenwick LLP, and individuals such as former Blackstone president Tony James and former Kirkland & Ellis chairman Jeff Hammes. The fresh capital will fund product development and further attorney hiring, taking Norm's total funding to more than $260 million.